Some economists believe that the balance of payments is what determines currency exchange rates. In fact, exchange rates are always about the purchasing power of some currencies relative to others.

Original Article:<a href="https://mises.org/wire/does-balance-payments-determine-exchange-rates" target="_blank">&nbsp;</a><a href="https://mises.org/wire/does-balance-payments-determine-exchange-rates" target="_blank">Does the Balance of Payments Determine Exchange Rates?</a>

Some economists believe that the balance of payments is what determines currency exchange rates. In fact, exchange rates are always about the purchasing power of some currencies relative to others. Original Article: Does the Balance of Payments Determine Exchange Rates?{ai:summary}<p>Currency exchange rates are not solely determined by the balance of payments, but rather by the purchasing power of different currencies. Some economists may have it wrong. #economy</p>

Does the Balance of Payments Determine Exchange Rates?

Loading...